Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Question
Chapter 32, Problem 4.1P
To determine
Decision, expectation, and the housing market.
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Students have asked these similar questions
A family of four has an income of $15,000 today and will earn $24,000 tomorrow.
If the family consumes $11,500 in the first period and $15,000 in the second period, what is the interest rate.
(this question deals with intertemporal choice from microeconomics)
(also I am seeking the formula to find the interest rate)
Suppose you have a choice of working full-time during the summer or going full-time to summer school. Summer tuition and books are $2,200. If you worked, you could make $7,000. Your rent is $1,000 for the summer, regardless of your choice. What is the opportunity of your choice of going to summer school?
Eduardo, a teacher, earned $40,000 as his annual salary from his employer in 2018.
But in 2019 he decided to quit that job and start his own business: manufacturing
skateboards. Here's what he did to accomplish it:
Stopped renting out his grandparents' cottage (for $8,000 a year) and used it
as his factory instead.
.He spent $60,000 on materials and utility bills.
He got that money from his savings account, which was earning 5%
annual interest.
• He leased machines for $10,000 a year and paid $15,000 in wages.
He sold $135,000 worth of skateboards.
Eduardo's accounting profit is
but his economic profit is
O160,000; 85,000
141,000; 160,000
O-1000; 50,000
50,000; -1000
Chapter 32 Solutions
Principles of Economics (12th Edition)
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